With the three projects he plans to introduce in the Legislature, the Executive leader intends to increase total tax revenue to 2% of GDP in two years and completely eliminate the primary deficit, which at the end of 2013 was 2.8% of GDP.

Although the suggested initiatives are not very different from those proposed by the administration of Laura Chinchilla, Fernando Rodriguez, deputy finance minister, told Nacion.com that "...One project, apart from these, intends to replace the current sales tax of 13%, with a value added tax (VAT) taxing services without increasing the rate. In addition, a second project introduces the system of global income. "

"... The vice minister thought it was unlikely that exemptions related to basic goods would be removed, although he said they would study the impact of inserting or removing goods from that group of foods according to consumption in the various social sectors ... The third bill by entering the whole is known as "tax evasion". This had already been announced in early June and aims to streamline and harmonize information shared by the Ministry of Finance, municipalities and the Costa Rican Social Security and to make cross-checks. "

Source: Nacion.com

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